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Artists Resale Rights, by Poppy Sunshine on Jun 6, 2018 8:16:24 GMT 1, Having bought plenty of art in auction over the last few years I’ve almost got my head around ARR and when it’s payable although I still get the odd surprise when I buy something which doesn’t come with ARR attached when I expect it to be.
Without going too deeply into it my query is this....
ARR is supposedly collected on the sale of qualifying artworks by auction houses and art market professionals.
Other than auction houses I take this to mean galleries and people selling art for a living.
So if I sell a piece of art via one of the well known galleries dealing with Banksys etc for example do they charge the buyer an extra 4% ARR on top of the sale price or do they take 4% out of their commission or do they have a loophole as a middleman which allows them not to even bother with it all?
Just wondered out of interest as I don’t recall it being mentioned on the forum as anything other than an auction house thing and I’ve not heard of anyone getting a nasty added surprise when buying from a gallery.
Having bought plenty of art in auction over the last few years I’ve almost got my head around ARR and when it’s payable although I still get the odd surprise when I buy something which doesn’t come with ARR attached when I expect it to be.
Without going too deeply into it my query is this....
ARR is supposedly collected on the sale of qualifying artworks by auction houses and art market professionals.
Other than auction houses I take this to mean galleries and people selling art for a living.
So if I sell a piece of art via one of the well known galleries dealing with Banksys etc for example do they charge the buyer an extra 4% ARR on top of the sale price or do they take 4% out of their commission or do they have a loophole as a middleman which allows them not to even bother with it all?
Just wondered out of interest as I don’t recall it being mentioned on the forum as anything other than an auction house thing and I’ve not heard of anyone getting a nasty added surprise when buying from a gallery.
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moron
Junior Member
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Artists Resale Rights, by moron on Jun 6, 2018 16:12:29 GMT 1, All professional art sellers have to pay artists resale rights as per the info below from the UK government.
I guess flippers who buy and sell quite a few prints etc each year are exempt because of course they are not dealers 
www.gov.uk/guidance/artists-resale-right
1. Introduction
The Artist’s Resale Right (ARR) entitles creators (‘authors’) of original works of art (including paintings, engravings, sculpture and ceramics) to a royalty each time one of their works is resold through an auction house or art market professional.
The right to this royalty lasts for the same period as copyright, so since January 2012 ARR has applied to qualifying works by artists who have been dead for less than 70 years.
2. Exemptions
Some sales are exempt. For example, where the work being resold was bought directly from the artist less than three years previously and it is being resold for €10,000 or less. This is generally known as the ‘bought as stock exception’.
Sales between private individuals, without the use of an art market professional, or to public, non-profit making museums do not attract royalty payments.
3. Calculation of royalties
ARR derives from a European Directive and came into force in the UK in 2006. The right only applies when the sale price reaches or exceeds the sterling equivalent of €1,000 and is calculated on a sliding scale.
Royalty Resale price
4% up to €50,000
3% between €50,000.01 and €200,000
1% between €200,000.01 and €350,000
0.5% between €350,000.01 and €500,000
0.25% in excess of €500,000
This scale is also cumulative in much the same way as income tax is calculated. For example, the royalty payable for an art work sold for €200,000 would amount to €6,500. This is made up of:
1st tier 0 to €50,000 will attract a royalty of 4% ie €2,000
2nd tier €50,001 to €200,000 will attract a royalty of 3% ie €4,500
Royalties are also capped so that the total amount of the royalty paid for any single sale of a work cannot exceed €12,500.
ARR is exempt of VAT.
4. Collection of royalties
Resale right in the UK is managed by collecting societies who then distribute the royalty to the artists. Individual artists cannot request payments directly from the art market professionals involved in the sale.
For more information about the administration of artists’ rights you can contact the Design and Artists Copyright Society (DACS) or Artists Collecting Society (ACS). Frequently asked questions on ARR are answered on the DACS website.
Published 16 May 2014
All professional art sellers have to pay artists resale rights as per the info below from the UK government. I guess flippers who buy and sell quite a few prints etc each year are exempt because of course they are not dealers www.gov.uk/guidance/artists-resale-right1. Introduction The Artist’s Resale Right (ARR) entitles creators (‘authors’) of original works of art (including paintings, engravings, sculpture and ceramics) to a royalty each time one of their works is resold through an auction house or art market professional. The right to this royalty lasts for the same period as copyright, so since January 2012 ARR has applied to qualifying works by artists who have been dead for less than 70 years. 2. Exemptions Some sales are exempt. For example, where the work being resold was bought directly from the artist less than three years previously and it is being resold for €10,000 or less. This is generally known as the ‘bought as stock exception’. Sales between private individuals, without the use of an art market professional, or to public, non-profit making museums do not attract royalty payments. 3. Calculation of royalties ARR derives from a European Directive and came into force in the UK in 2006. The right only applies when the sale price reaches or exceeds the sterling equivalent of €1,000 and is calculated on a sliding scale. Royalty Resale price 4% up to €50,000 3% between €50,000.01 and €200,000 1% between €200,000.01 and €350,000 0.5% between €350,000.01 and €500,000 0.25% in excess of €500,000 This scale is also cumulative in much the same way as income tax is calculated. For example, the royalty payable for an art work sold for €200,000 would amount to €6,500. This is made up of: 1st tier 0 to €50,000 will attract a royalty of 4% ie €2,000 2nd tier €50,001 to €200,000 will attract a royalty of 3% ie €4,500 Royalties are also capped so that the total amount of the royalty paid for any single sale of a work cannot exceed €12,500. ARR is exempt of VAT. 4. Collection of royalties Resale right in the UK is managed by collecting societies who then distribute the royalty to the artists. Individual artists cannot request payments directly from the art market professionals involved in the sale. For more information about the administration of artists’ rights you can contact the Design and Artists Copyright Society (DACS) or Artists Collecting Society (ACS). Frequently asked questions on ARR are answered on the DACS website. Published 16 May 2014 |
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